Multiple Choice
Figure 8-10
-Refer to Figure 8-10.Suppose the government imposes a tax that reduces the quantity sold in the market after the tax to Q2.With the tax,the consumer surplus is
A) (P0-P2) x Q2.
B) 1/2 x (P0-P2) x Q2.
C) (P0-P5) x Q5.
D) 1/2 x (P0-P5) x Q5.
Correct Answer:
Verified
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